Thank you very much for your joining us today. This is Mitsui O.S.K. Lines Fiscal Year 2021 full year business performance reporting. My name is Sonoda of Corporate Communications Department. We thank you for your continued support for our company. Today's presenters are President and CEO of the company, Hashimoto, CFO Umemura, and Tamura, who is in charge of corporate planning. Also present here, today are Hinooka, Executive Officer in charge of a regular liner business, and Nakanishi, Assistant to the Executive Officer in charge of Corporate Communications. First part will be the financial results of the fiscal year 2021, and the second part will cover the management plan for fiscal year 2022 and the Rolling Plan 2022. The first part from the President and CEO of Hashimoto. Thank you for joining us today. This is President CEO Hashimoto.
I'd like to kick start today's session with a few remarks on fiscal year 2021 full year results. In terms of overall performance in 2021, revenues and ordinary profit both reached record highs due to historically strong performance of the container ship business on the back of solid cargo movements, market recovery in the dry bulk and car carrier businesses, and a stable earnings in the LNG carrier business. Fiscal year 2021 ordinary profit was JPY 721.7 billion. Our financial position has improved significantly, and we believe we have taken a solid step towards realizing the group's vision. The forecast for 2022 is slightly lower than the record high profit of 2021.
Reasons for this include, one, the decline, or rather the coming back to the regular level of shipping demand as the logistics turmoil caused by the pandemic shock subsiding. Two, the risk of economic recession on a global scale due to the ongoing global inflation. Then three, fluctuations in a transportation demand caused by the situation in Russia and in Ukraine. Nevertheless, we expect ordinary profit of JPY 525 billion, which we consider to be a very high level in absolute terms. Under the Rolling Plan 2022 management plan, each strategy will be promoted using the Rolling Plan method in which the contents are reviewed annually, and the next fiscal year will be a year of preparation for the next plan, which will extend through 2035.
With the good results for the fiscal year 2021, the group's financial position has improved significantly, and it is now in a position to consider expanding the scale of its investments. While assessing the investment targets, we will actively make necessary investments, including environmental investments in low and decarbonized areas, investments in new businesses that will support the global growth of the entire group, and investments in human resources to support these investments. The strategic framework, profit plan, financial strategy, and investment plan of the Rolling Plan 2022 will be discussed later on. Management Executive Officers Umemura and Tamura will now explain the details of each of these. I give the stage to those two executive officers. First, Umemura-san, please.
Hello, this is Umemura. We thank you for your being here with us today.
Please refer to the blue business performance document, page three and page five. First, the revenues. In fiscal year 2021, revenues increased 28% from the previous fiscal year to JPY 1,269.3 billion. In addition to favorable market conditions in the dry bulk business, the recovery in car carrier transport volume and port and logistics handling volume in the product transportation business was a contributing factor. Ordinary profit, as reported earlier by CEO Hashimoto, reached JPY 721.7 billion, a significant increase over the previous year. The contribution of equity method earnings from Ocean Network Express, ONE, the company integrating the container ship business, is notable.
Even without that contribution, ordinary profit increased from the previous year to JPY 86 billion, achieving the mid to long-term goal of stably earning JPY 80 billion-JPY 100 billion in ordinary profit goal set since the beginning of the current Rolling Plan-type management plan in fiscal year 2017. Net income also reached a record high of JPY 708.8 billion. Now let's go to the full year results by segment. Please refer to slide four and five. Dry bulk business. In the dry bulk business, MOL Dryb ulk, which was launched in April 2021, contributed to improved operating efficiency in addition to favorable market conditions, resulting in significant improvement from the ordinary profit deficit in the previous fiscal year to JPY 43.2 billion. In the black.
This page describes the situation in each sub-segment. A steel raw material carrier Capesize bulkers business recorded a significant increase in a profit due to stable revenues from a medium and long-term contracts, as well as firm demand for transportation of steel raw materials and a limited supply of shipping capacity that kept market conditions at a high level. Medium and small sized bulkers operated by MOL Drybulk also posted an increase in profit compared to the previous year, mainly due to favorable market conditions associated with a firm transport demand for grain, coal and other commodities, mainly to China. Profitability also improved for wood chip vessels and open hatch vessels operated by equity method affiliate, Gearbulk due to a recovery in transport demand and favorable market conditions for general bulkers. The next section is the energy and offshore business.
Energy and marine offshore business secured stable profits, mainly from medium- and long-term contracts, mainly in the LNG and offshore businesses. The short-term freight rate market for oil tankers was sluggish in 2021. This was the main reason for the decrease in ordinary profit from the previous year, which amounted to JPY 19.8 billion. Moving on to the sub-segment of energy and offshore business. Crude oil tanker. The market for crude oil tankers was sluggish due to a decline in demand for oil resulting from the stagnation of global economic activity. Although we steadily secured profits from medium to long-term contracts, which account for the majority of our crude oil tanker fleet, profits declined significantly compared to the previous fiscal year 2020, which saw soaring market prices.
As for tankers other than crude oil carriers, LPG carriers and methanol carriers, which are mainly under medium to long-term contracts, have steadily secured profits. In the LNG carrier business, almost all vessels were engaged in a medium to long-term contracts and secured stable profits. In the offshore business, the FPSO operated smoothly and secured stable profits. Although one new FSRU vessel was put into service for a power generation vessel in Senegal, one existing vessel, MOL FSRU Challenger, entered the off-contract period, resulting in a year-on-year decrease in earnings. The next is a product transport business. The product transportation business recorded a significant increase in both revenues and profits, with ordinary profit of JPY 662.9 billion, driven by ONE company. First, the sub-segment is a container ships. Now please go to page three of the ONE document, magenta color document.
Compared to the previous year, profits have increased significantly here. Profit after tax of $16.756 billion so was achieved. This was due to, one, continued strong transportation demand throughout the year. Two, supply side constraints caused by ongoing disruptions throughout the supply chain. And three, higher than expected freight market trended conditions. This has resulted in a significant increase in profits. Even in the second half of the year, after the end of the Q3 and Q4 , the company made a profit of approximately $10 billion. Incidentally, as shown here for the January-March period of this year, cargo demand remained strong despite the impact of seasonal factors such as the Chinese New Year, the situation in Russia and Ukraine, and the China lockdown.
On the supply side, there has been some improvement in port and inland congestion on the West Coast of North America, but supply chain disruptions still persist in many locations. Please return to the blue document, now and on page six. As in the container ships business, the terminal and logistics business posted an increase in profit as both port and logistics handling volumes recovered. As a result, our container ships business as a whole recorded an ordinary profit of JPY 653.2 billion, an increase of JPY 536.1 billion compared to the previous year. Next is car carriers. In fiscal year 2021, cargo movements recovered significantly, especially in the first half of the year from the previous year when the COVID-19 pandemic caused a significant decrease in transportation volume.
Although there was some impact from the shortage of semiconductors and parts, we were able to secure the same level of transport volume as expected at the beginning of the fiscal year through flexible operation adjustments, et cetera, by successfully capturing demand for used car transport out of China and India, where shipping demand was strong and out of Japan as well. Our car carriers remained having no surplus in terms of shipping capacity, supply and demand. The business has improved its profitability significantly from the previous year's loss to a profit. Ferries and coastal Ro-Ro ships. Cargo transportation demand is firm. On the other hand, demand for passenger services remained weak due to the impact of the COVID-19, higher bunker oil prices, resulting in a lower profitability. The real estate business made a stable profit contribution even during the pandemic.
This is in the associated businesses. On the other hand, the cruise ship business saw a year-on-year decline in profits and the related business as a whole, partly due to the cancellation of cruises. Finally, let me touch upon the dividend for fiscal year 2021. In line with the increase in the net income, the company plans to pay a year-end dividend of JPY 900 up from the previously announced JPY 750 per share. Together with the interim dividend of JPY 300 per share already paid, we plan to pay a full year dividend of JPY 1,200 per share. Here onwards are our full year forecast for 2022 fiscal year. Please go to slide seven and nine on the consolidated full year forecast.
While the normalization of logistics is just bringing back the logistic disruptions to the normal state is gradually progressing, we expect the global economy to slow down and cargo movements to weaken due to the ongoing global inflation and heightened geopolitical risks, such as the situation in Russia and Ukraine. Nevertheless, in light of the current strong business conditions, we expect ordinary profit of JPY 525 billion, which is second only to last year's record high. Excluding the container ships business, ordinary profit is expected to be JPY 85.0 billion, the same level as the previous year, due to increased profits from the car carrier and energy businesses. The exchange rate assumption is at JPY 120 to the dollar, and the fuel unit price is assumed to be $810 per ton.
Let's now move on to the by segment accounts. Please refer to page eight and nine of the document. The segment and the sub-segment classifications have been revised this year, including the separation of the real estate business in line with the company's portfolio strategy. Comparisons with the previous year are made after recalculating the previous year's results by applying the new categorization. First is our dry bulk business. In addition to stable profits from medium- to long-term contracts, we assume firm cargo movements and market conditions. However, we expect ordinary profit of JPY 30 billion, which is a decrease from the previous year when the market was in its best condition in a decade.
Although both, Capesize bulkers operated by the ferrous raw materials division and small- to mid-size bulkers operated by MOL Drybulk are supported by firm transport demand, we expect the market to soften in the second half of the year and beyond, taking seasonal factors into account. In the bulk carrier business, we are currently working to increase profits by capturing medium-term contract to meet growing demand. Next, energy business. The segment name was changed from energy and offshore business to energy business. We expect ordinary profit of JPY 22 billion and increase over the previous year by accumulating a stable profit through the operation of new projects such as FPSO and FSRU projects. Let's now see the segment of energy business. Tankers offshore business.
The sub-segment, which was dubbed as an oil tankers until last year, is now named as a tankers offshore business with the addition of the FPSO business. The LPG and ammonia shipping business have been moved to liquefied gas business, which will be covered next. In the tanker business, both crude oil carriers and product carriers are expected to perform well as cargo movements and market conditions are expected to recover, mainly due to a recovery in demand for crude oil as a result of the lull in the pandemic. Profits from the methanol and chemical vessels are also expected to be broadly in line with the previous year. In the offshore business, the FPSO business is targeting an increase in a profit as two projects offshore Brazil came on stream in the last fiscal year. Liquefied gas business.
Next is this, as explained earlier, we have removed the FPSO business from what was LNG and offshore business and added the LPG and ammonia ship business to the liquefied gas business. In the LNG carrier business, we expect it to continue to secure stable profits but expect a temporary decrease in profits due to the completion of some long-term contracts. Profits from LPG vessels are expected to be broadly in line with the previous year. In the FSRU business, we expect it to improve profits year-on-year due to the full year operation of the LNG power generation vessel project in Dakar, Senegal. The next is a product transport business. In the product transport business, container ships business expect the short-term freight rates to soften in the second half of the year and beyond.
Ordinary profit is expected to be JPY 468 billion. Now by sub-segment. On container ships business. For ONE, Ocean Network Express, as noted on page six of the company's materials, the magenta one, it continues to be difficult to predict when the supply chain disruption will be resolved. ONE has not yet determined its earnings forecast due to a number of events that could have a significant impact on earnings, including the prolonged impact of the situation in Russia and Ukraine, the impact of the lockdown in the Shanghai region, and the upcoming labor management negotiations in the West Coast of North America, and the progress of global inflation.
MOL expects the market to remain strong for the time being, but both handling volume and rental rates are expected to weaken from the second half of the year when the global economic slowdown and the supply chain disruptions will ease to some extent. Ports Logistics was included in Container Ships until last year, but from this year it is presented as a separate sub-segment. In the Port and Logistics business, we expect a decrease in profit, assuming a decline in the volume of cargo handled as well as the movement of containers. Going forward, the company will seek to further generate synergies with the Utoc Corporation, which became a wholly owned subsidiary of the company in March of this year. Car Carriers business is the next.
As for car carrier cargo movements, although we need to closely monitor the impact of the semiconductor shortage, lockdowns in various countries and the situation in Russia and Ukraine on sales and production of finished cars, we expect to increase profits by continuing flexible operations and vessel allocation adjustments in line with the cargo movements as we did in fiscal year 2021. Ferries and Coastal Ro-Ro Ships are expected to return to profitability as passenger demand recovers following the gradual settling of the COVID-19. Real Estate business. This is a new independent segment with Daibiru Corporation, which officially became a wholly owned subsidiary of this company today as its pivotal company.
In the Real Estate business, although there will be a decrease in our revenues due to the reconstruction of properties held in Japan, we expect the business to continue to make a stable contribution to profits with an increase in occupancy rates of overseas properties as we forecast ordinary profit of JPY 9 billion. Finally, regarding the dividend for fiscal year 2022, we have executed a three-for-one stock split effective April this year. Under the new number of shares, we plan to pay an interim dividend of JPY 200 per share and a year-end dividend of JPY 150 per share for a total of JPY 350 per share for the full year.
Regarding the dividend payout ratio, we plan to raise it by 5% from the current level of around 20% to around 25%. Apologies, and by five points, for the current fiscal year in order to strengthen our shareholder returns. Tamura will explain the future dividend policy for 2023 onwards in the next Rolling Plan 2022 section.
Let me now elaborate on our management plan, Rolling Plan 2022. My name is Tamura, and I'm the Managing Executive Officer in charge of the Corporate Planning Division since April 1. Please, now refer to the separate Rolling Plan 2022 presentation material. That's what you are seeing on the screen. Please see page three. Six years have passed since the start of the Rolling Plan.
Let me review here the past six years and explain how we are positioned for fiscal year 2022. The Rolling Plan, which depicts where the group wants to be, was launched in 2017 and has been updated annually while setting targets to be achieved by 2027, 10 years from that time. Since we are now on track to achieve our mid-term profit level target of JPY 80 billion-JPY 100 billion in ordinary profit, which we set back in 2017. While continuing the Rolling Plan approach, we will use 2022 as a year to prepare for the transition to the next plan, which will cover 2035 and the next 10 years. If we go to page four.
In order to prepare for the next plan, we will further promote the strategies and initiatives of the Rolling Plan, such as those shown in the horizontal axis of the table, including efforts to address sustainability issues. The next page is slide six. Here are the specifics of the Rolling Plan 2022. Page six gives an overview of our activities. In the middle is the MOL Sustainability Plan, which is the sustainability plan we recently announced to the public on April 18th, this year.
To the right of this, that is the Rolling Plan 2022, and we will use these two as the dual wheels to enhance our corporate value with the aim of realizing the group vision stated on the right-hand side. Changes from fiscal year 2021 include updating of the Sustainability Plan and a further emphasis of a stronger commitment to digital transformation reflected in the Rolling Plan 2022. Please see page seven. This page illustrates the relationship between the MOL Sustainability Plan and the Rolling Plan 2022. The left side of the chart shows which of the five sustainability issues in the MOL Sustainability Plan are primarily tied to which strategies and initiatives in the Rolling Plan.
In order to expand our business through active investment in the future or going forward, we must also redesign the organizational aspects of our company, which is the foundation of each strategy and the Rolling Plan 2022. As we seek to resolve the five sustainability issues listed on the left, we will proactively engage in and invest in organizational capability enhancement, work style reform, and digital transformation stated in the Rolling Plan 2022. Those will be our foundation in moving forward. Next is page eight. With the context I've just elaborated, the theme of the Rolling Plan 2022 is to demonstrate the group's comprehensive strength and take on the challenge of growing globally. This will be the continuing theme bridging into the next plan too.
Highlights the bottom half of the slide. We will continue to invest actively with our improved financial situation. As for growth strategies, we will continue to focus on the three pillars of a portfolio strategy, environmental strategy, and a regional strategy for our active investment. Next page onwards, let me explain the details of these. Please see page nine now. Here onwards are the profit planning and investment financial planning. At first, the profit plan. In fiscal year 2022, we expect a profit of JPY 525 billion based on our projection of a softening containership market conditions.
After that, the containership market is expected to turn toward recovery in fiscal year 2023, when the market is expected to remain low, and we aim to achieve JPY 200 billion in ordinary profit in fiscal year 2027 through steady management execution, partly with the portfolio strategies. This table shows P/L for the next three years and P/L estimates and targets for fiscal year 2027 by segment. We expect the business environment to remain very volatile over the next three years. In light of this, let me briefly discuss about each segment. Firstly, the first line, the dry bulk. Demand from China, which recovered most rapidly from the COVID-19 situation, is expected to be firm. Profits are anticipated to maintain the pre-COVID-19 level of JPY 20 billion-JPY 30 billion.
The energy business in the second line is expected to increase profit mainly due to the addition of profit contributions from the FPSO and FSRU businesses over time, et cetera. By investing in an LNG carriers, power generation vessels, and FSRUs, we aim to steadily build up profits and achieve a profit level of over JPY 60 billion in fiscal year 2027. The third line, product transport and real estate business, assumes that while car carriers and ferries will accumulate stable profits in a product transport, containerships will see both cargo volumes and rents weaken from the second half of fiscal year 2022 onwards, and that they will enter a recovery trend after fiscal year 2023. The real estate business will make a fresh start with the recent event of Daibiru Corporation becoming our wholly owned subsidiary.
The aim is to expand the business by making maximum use of our groups' assets and their networks, and to contribute to securing stable profits. Now please, see slide 10. This is a summary of the investment plan. A total of JPY 1 trillion in investments is expected over the three years from fiscal year 2022 to 2024. Of this, new investments that have not already been identified or confirmed amounts to JPY 730 billion. As a continuation from fiscal year 2021, we will focus on environment-related investments while keeping in mind that we will also focus on our non-shipping businesses and explore M&A opportunities in the future. As for environmental investment, we will make strategic investments totaling JPY 530 billion in this arena.
JPY 335 billion for the development of an alternative fuel fleet, including the development and ordering of next-generation fuel ships such as LNG-fueled bulkers and car carriers, and JPY 195 billion for the expansion of low carbon or decarbonized energy businesses, including offshore wind power generation projects. In addition, we're planning to invest JPY 470 billion in real estate-related projects of Daibiru and in the replacement of existing vessels. Of the total investment, we expect M&A to account for up to JPY 300 billion over the six-year period between 2022 and 2027. Of this JPY 300 billion, JPY 100 billion is already incorporated in the plan for the next three years from 2022 to 2024.
If ideal M&A opportunities arise, there is a possibility that M&A investments planned for 2025 and beyond will be accelerated to an earlier timing. The IRR for these investments is expected to be 5% or more for environmental investments and 8% or more for other investments, with the overall return planned to exceed the cost of capital. Next, please see slide 12. This page is summarizing the profit plan and the financial strategies discussed. Our profit target for fiscal year 2027 is JPY 200 billion in ordinary profit and a stable ROE of 9%-10%. For the amount of investment, please refer to the investment cash flow in the middle section of the cash flow.
Over the six years from fiscal year 2022 to 2027, a total of JPY 1.9 trillion is expected, of which JPY 1.6 trillion is expected as new investments to be cashed out. Against the backdrop of our greatly improved financial situation, we will accelerate environmental and real estate-related investments, but we'll maintain our financial discipline. Due to the time lag between investment decisions and cash outflows, the net gearing ratio will be 0.6x-0.7x at the end of fiscal year 2022 to 2023 and then stabilize at less than 1.0x by the end of fiscal year 2027.
Regarding shareholder returns, we plan to maintain a dividend payout ratio of about 25% for fiscal year 2022, and we'll consider reviewing this in fiscal year 2023 and beyond in light of trends in the TSE Prime Market while confirming the progress of our investment plan. The remaining slides will briefly discuss strategies to ensure these profits, investment, and financial plans. Please, see slide 13. Slide 13 shows one of the three pillar strategies, the portfolio strategy. The portfolio strategy aims to raise the profit level of the right-hand side non-shipping business from approximately JPY 14 billion in fiscal year 2021 to the JPY 60 billion-JPY 80 billion level by fiscal year 2035, and its focus is to build a foundation for this goal.
We will continue to invest actively in offshore wind power generation, logistics, and real estate, and plan to invest at least JPY 100 billion in real estate over the three-year period from 2022 to 2024. Real estate will be a particular focus. Slide 14, please. Next is the environmental strategy. Our environmental strategy continues our commitment to the MOL Group Environmental Vision 2.1, which was announced in May last year. As mentioned earlier, we plan to invest JPY 360 billion in new projects. Through this, we will work on the development of alternative fuel hulls and decarbonized energy projects. Slide 15, regional strategies. Our regional strategy is to win large-scale projects, mainly in Asia, that are not limited to transportation by leveraging the collective strength of the group.
India is our target market for this fiscal year. Using India as a pilot case, we will establish a system in which related organizations, including not only the business units directly in charge, but also local sales offices, group companies, and the head office's administration department, will transcend the barriers to organically collaborate with each other. We hope to use this structure as a breakthrough to strengthen our sales activities. Finally, others are summarized on slide 16-18. In order to expand the business through active investments going forward, we must also fundamentally review our organizational structures, which is the foundation of our business. We will work further on a digital transformation, organizational empowerment and work style reform, safety and governance. This concludes my presentation. Thank you.
This concludes all the presentations we have for today.
Please do reach out to us should you have any inquiries. Thank you very much once again for your joining us today.